XSTRATA COPPER ENTERS AGREEMENT WITH ZIJIN MINING GROUP IN RESPECT OF INDOPHIL SHARES
Brisbane, 1 December 2009
Xstrata Queensland Limited (ABN 69 009 814 019) ("Xstrata"), a wholly owned subsidiary of Xstrata plc (LSE: XTA.L, ZSE: XTA.S), has entered into an agreement with Zijin Mining Group Co Ltd (HKG: 2899) (“Zijin”) in respect of Xstrata’s 19.9% stake in Indophil Resources NL (ASX: IRN.AU) (“Indophil”).
Under the terms of the agreement, Xstrata has agreed to sell its shareholding in Indophil to Zijin for AUD 1.28 per share, subject to certain conditions. Indophil announced earlier this morning an agreement with Zijin with respect to a takeover offer for Indophil.
Indophil’s only major asset is a 34.23% interest, with a right to acquire an additional 3.27%, in the Tampakan copper-gold project in the southern Philippines. Xstrata holds the remaining 62.5% interest in the Tampakan project which is managed by Xstrata’s affiliate company, Sagittarius Mines, Inc.
Xstrata Copper Chief Executive, Charlie Sartain, said “Zijin’s offer for Indophil clearly demonstrates the attractiveness of the Tampakan project and follows the revised Mineral Resource estimate published on 20 October 2009, which included a 25% increase in Measured tonnes and a 12% increase in Measured and Indicated tonnes for a total resource of 2.4 billion tonnes at a grade of 0.6% copper using a 0.3% copper cut off grade.
“Xstrata welcomes the introduction of a joint venture partner with the capacity to support the advancement of the Tampakan project.
“A Feasibility Study is currently under way at Tampakan and is expected to be completed during the first half of 2010.
“We are also undertaking a comprehensive Environmental and Social Impact Assessment for the project, including extensive specialist studies and stakeholder engagement activities, that is ontrack to be completed by the end of 2010.”
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